I have some of my properties under an LLC. I would like to add a (grown) family member to the LLC using an amendment. I can add in other amendments about ownership percentage and survivorship but my question is do I need a partnership agreement on top of that. I am all buy and hold.
RH in Missouri
Should be a simple resolution, but you might want to consult with an attorney, this is probably a simple boiler plate form for them and should not cost a lot of $$, however they might have some input on to questions that might need to be decided on what and how to add.
Hey, no need for a partnership agreement. You will want to have some meeting minutes about this as well as issue stock.
@Richard Heine the proper procedure is going to be very dependent on your state statutes on how to do this. In Texas, you just file 1 form and that's it. Missouri might be the same...but it may not be. We have a specific state department that handles filings and they are very friendly with answering questions. I would bet that Missouri would have a similar department that could advise you on how to properly add someone to your LLC. Give them a call first and see what they say. Hope this helps!
This is done in the Operating Agreement, usually via an Amendment to the OA Exhibit concerning current Members.
Yes, Missouri has an amendment form and it's probably time to update the minutes with a new meeting. Thanks and I will get back with more info. I meet with my attorney tomorrow.
How do you know how much to charge the new member of the LLC? I am thinking about adding a member to my LLC, but not sure how to go about valuation.
This is really wide open. Your new member can be a percentage owner of the LLC. Say you 75%, them 25%. This would be of assets including depreciation deductions but also liabilities like tax. I am adding in family members so mine is different. Some have percentage ownership, one will have ownership or rights over one property.
There are some real pros in here that will chime in. I have received great advice on these matters in here that my tax person was not sure of.
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